So, with Australians having a global reputation for a laid-back attitude to life in general, you might expect to hear we’re burning through those leave days, grabbing every opportunity to take a well-earned break from work. But you’d be wrong. A Roy Morgan study revealed Australia’s paid workforce had banked up almost 134 million days of unused annual leave – quite alarming for a country of only 24 million. In fact, this amounts to an average of 16 days per worker according to the report.

But just when you might think failing to take holiday is a completely inexplicable professional offence, it turns out there are a few common reasons why Aussies aren’t taking full advantage of their entitlements. A report produced by The Australia Institute found 12% of workers with unused leave felt guilty about taking it, 26% had too much work to do, 31% didn’t feel they needed it, and 33% said work was too busy for time off.

What’s the cost of not taking leave?

Reasons and excuses for not taking leave might be in plentiful supply, but are we at risk of overwork and what’s it costing us?

Annual leave plays an essential part in how we recharge and recuperate to stay healthy, maximise productivity and maintain morale. Without it, workers are undoubtedly placing themselves on the fast track to ‘burnout’ – a work-related stress condition that’s now recognised by the World Health Organisation (WHO). The WHO describes burnout as a “state of physical, emotional and mental exhaustion that results from long-term involvement in work situations that are emotionally demanding”.

Could open leave policies provide the solution?

Recognising the many health and productivity benefits of paid annual leave, some employers are starting to experiment with the concept of unlimited annual leave in their attempt to ensure employees take sufficient leave while getting the job done. As the name suggests, unlimited leave (or open PTO as it’s often referred to in the States) is simply where employers don’t cap or record the number of leave days taken by their employees.

Understandably, straying from the traditional capped leave policy could raise fears of abuse and a downturn in productivity for some business owners. Meanwhile, some reports suggest unlimited leave can actually lead to employees taking less time off due to feelings of guilt and internal competition.

The gift of uncapped holidays by itself might not solve Australia’s leave-hoarding problem – it should come hand in hand with a workplace culture and leadership team that shifts its mindset from the structured approach to one that actively encourages adequate time off.

“It’s not good for your health if you’re just banking up all of your annual leave. Because it’s unlimited, it’s not like you need to save your annual leave now to take a really big holiday,” Amantha told HC Online.

In addition to encouraging employees to take deserved time off, unlimited leave policies could offer benefits beyond a healthier workforce and increased productivity. These could include:

Improved morale – Employees will feel trusted and respected by employers while enjoying an overall improved sense of worth. This results from a more entrepreneurial approach to achieving objectives which encourages employees to manage their time and and take leave according to their own schedules and judgment.

Unlimited annual leave might not work for everyone and there are many factors to take into consideration. Some businesses however, have shown it can work when implemented in the right way and for the right reasons. For companies whose employees are contributing to Australia’s mountain of unused leave, uncapped time off could be an effective initiative for avoiding the risks of overwork and promoting a healthier and more productive workforce – provided the workplace culture supports and respects it.